We have all heard the stories about cash advance lenders charging their customers excessive interest fees. It is true that most payday loans have the highest interest rates compared to any other type of loan. As unfair as this may sound, payday loans do serve a purpose and there are many people who use them to their advantage.
The majority of people who need the assistance of a payday loan have poor credit and cannot obtain a loan by going through the traditional routes. Banks, credit unions and other lending institutions require for their customers to have a credit score of a certain level that a lot of people just simply do not have. Cash advance lenders have reasons to justify the high interest rates that they charge. Where else can you go and receive cash on the spot? Lending cash to people with questionable credit is a big risk to the lender. They have to make up for this risk and for having a large amount of cash on sight by charging higher interest rates on their loans.
Critics of the payday loan say that the short terms of the loan and the high interest fees can cause people to become trapped in a never ending cycle of payday loans. In some circumstances this case may be true. It can turn into a bad situation when people take out a cash advance loan that they know they cannot payback in addition to leaving enough money left over for other bills and living expenses with their next paycheck. In this situation, the person who is in need of a cash advance is better off to ask a friend or a relative for a loan who will not charge them interest and will be more lenient on the payback terms.
In response to the allegations that the problem with payday loans lies with the lender instead of the borrower, cash advance loans are not meant to be a permanent solution to cash flow problems. They are intended to be used only for unexpected expenses and in the case of an emergency.
If someone finds themselves on the payday loan merry-go-round, they more than likely need to step back and asses their budget. If they do not have a budget, that itself may be a large part of the problem. If someone cannot afford to pay all of their bills and necessities after cutting out all unnecessary expenses and going on a budget, they may want to seek higher paying employment or look into debt management solutions.
Even if you have good credit, there are benefits to using a payday loan. The limit on a cash advance loan tends to be much lower than the limit for a traditional loan. Many circumstances call for the borrower to only need $500 - $1,000. They can easily obtain the money through a cash advance without the hassle of an application, a credit check and waiting for approval. Many online websites such as Easy Approval Personal Loans offer both unsecured personal loans and payday loans so you can easily find the loan that best suits your needs.
In conclusion, only you can decide if a payday loan is the best option best for your situation. There are pros and cons to every situation. By being responsible with your finances and educating yourself on all of the possible loan options available to you, you will have the best chance of coming out on top.
-------------------------
Note: This article may be freely reproduced as long as the authors bio paragraph at the bottom of this article is included, the article is published "as is" (unedited) and all URL's are made active hyperlinks with no syntax changes.
-------------------------
This article was written by Beth Pardue who has over 10 years of experience in the financial industry assisting clients with assorted financial needs. To learn more about your personal loan options or to apply for a personal loan online please visit: http://www.easy-approval-personal-loans.com
Since the invention of the first self propelled car by... Read More
If you're getting in over your head with credit, you... Read More
Trying to find good UK secured homeowner loans might seem... Read More
Check advance can come in really handy when you're waiting... Read More
Secured homeowner loans come in a variety of different types... Read More
You just finished high school and realize you have two... Read More
An unsecured loan is a personal loan where the lender... Read More
Payday loans have many names -- cash advances, signature loans... Read More
Online car loan shopping practically guarantees that you are getting... Read More
Watching more and more people fall in the trap laid... Read More
With a stated objective to help consumers, Congress deemed it... Read More
A UK Home Improvement Loan Can Give You The Home... Read More
Emergency - the word is written everywhere in red and... Read More
A payday advance is a loan obtained to cover unexpected... Read More
For a fast cash advance loan, no fax payday loans... Read More
Outlined here are some of the many benefits of a... Read More
Personal loans are offered by lenders such as banks and... Read More
Martin graduated of the college with dreams of a highflying... Read More
If you're like most people, then you've got debt in... Read More
The internet is teeming with lenders who are vying for... Read More
Different types of loans are available for almost every aspect... Read More
Bad credit secured loans are a relatively recent addition to... Read More
If you've been thinking of getting a secured homeowner loan,... Read More
Why do kids get all the breaks? Winter-weary adults, fed... Read More
Many banks actively encourage their clients with low balances to... Read More
Cheap online loans may seem hard to come by, but... Read More
One of the most enduring myths of loan industry is... Read More
A $500 payday loan can be a real life saver... Read More
Are their rewards of being your own boss? Yes, in... Read More
Are you thinking of going in for a payday loan... Read More
People have to work to survive. The desire to maintain... Read More
In the full moon night, on a lovely morning you... Read More
A UK Home Owner Loan Can Unlock Your Capital To... Read More
Government loans are those that the government of a country... Read More
The opportunity to spend money is everywhere. There is no... Read More
Buying A New Car: A new car is second only... Read More
A buyer of a new home may find himself or... Read More
A business loan is designed for a wide range of... Read More
Here is a useful guide to fast secured loans. Here... Read More
Here is a useful guide to getting a bad credit... Read More
A home equity loan is essentially a type of second... Read More
If you spend more than you earn on a regular... Read More
Are you paying out too much every month for your... Read More
In the full moon night, on a lovely morning you... Read More
A Home loan is the generic term for a loan.... Read More
What will it take for you to get a low... Read More
It can seem impossible at times to get bad credit... Read More
If you're in the process of trying to find home... Read More
Martin graduated of the college with dreams of a highflying... Read More
Title loans have the same features as a secured loan,... Read More
In order to understand qualifications for loan approval, let's examine... Read More
It's possible to receive up to 500 dollars cash overnight... Read More
Confused by how to finance a small business? One key... Read More
VA loans are basically mortgages or home loans geared towards... Read More
When borrowing money it is usually because we lack the... Read More
As tuition rates at many colleges continues to rise, the... Read More
Bad credit is like an ongoing battle for many loan... Read More
Plato said, 'We can easily forgive a child who is... Read More
Here is a useful guide to Homeowner Loans. A Homeowner... Read More
A UK Home Improvement Loan Can Give You The Home... Read More
If you're looking for a fast homeowner loan, you might... Read More
When looking for UK loans, it's always important to take... Read More
Need extra cash till payday? It's easy to apply and... Read More
Refinancing your loan is one of the best kept secrets... Read More
So, you want to get a loan?Here are some simple... Read More
Student loan debt is a problem that affects many former... Read More
Loan |